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Football League to sue Carlton and Granada

The Football League is suing ITV parent companies, Carlton Communications and Granada Media, for £178.5m, saying they 'continue to deny responsibility' for the payments their failed subsidiary owes it.

The League is seeking a declaration from the High Court saying Carlton and Granada are ‘liable as guarantors for future payments totalling £178.5m plus interest.’

Football League chief executive David Burns said the League had made it clear from the outset that it would sue ITV’s parent companies if necessary.

He added: ‘The Football League has sought to negotiate with Charles Allen and Michael Green but they have refused to meet with us and, in view of their unwillingness to enter into a meaningful business discussion, we are now focused on the legal process.

‘Leading counsel has advised that the League has a strong case on the merits and we remain confident of success.’

The League is also preparing a claim against the ITV Network, saying the failed digital channel and the network (under the direction of Carlton and Granada) ‘have acted in partnership to exploit the League’s media rights.’

The failure of ITV Digital brought the Football League contract with it to an end, and it has taken back all media rights granted under the agreeement.

But it said it would lodge a further claim for damages of over £500m against the failed company with its liquidator once they were appointed.

It will also demand a detailed investigation of ITV Digital’s collapse ‘and the actions of those most closely concerned, including their Directors and Officers, Carlton, Granada and the ITV Network.’